The detailed Customs Clearance Checklist for both import and export shipments including the fundamental documents and steps as follows:
Import Customs Clearance Checklist
1. Shipping Documents
- Commercial Invoice: It is a detailed document/invoice from the seller to the buyer, which includes the product’s value and description of the goods, payment terms, and other fundamental details.
- Packing List: A detailed inventory of the shipment’s packaging, quantity, weight, and sizes are described here.
- Bill of Lading (B/L) / Airway Bill (AWB): It is a transport document from the carrier (ocean or air freight) to the shipper, which performs as a contract for carriage and receipt of goods.
- Certificate of Origin: A document which certifies the country of origin/manufacturer country of the goods, mostly required for customs duties and preferential trade agreements.
- Import License (if applicable): Some countries require a specific license for importing specific goods (e.g., restricted products).
- Customs Declaration (Import): The declaration to customs authorities that maintains detailed information about the goods being imported, including the HS code (Harmonized System Code) and value of the goods.
- Importer’s Customs Bond (if required): An agreement may be required to ensure payment of customs duties and taxes.
- Proof of Payment/Transaction: Any documentation or proof of payment made for the transaction, including the letter of credit or bank transfer receipts called TT.
- Dangerous Goods Declaration (if applicable): If the shipment includes hazardous materials, a dangerous goods declaration must be submitted.
2. Documentation for Customs Authorities
- Import Customs Declaration Form: Submit a completed declaration form with all necessary details, including the tariff code, value of the goods, and transport information.
- Harmonized System (HS) Code: Ensure that each product is correctly classified under the Harmonized System Code, which is used globally to identify goods and assess tariffs.
- Duties & Taxes Calculation: Customs will calculate the duties and taxes applicable based on the value and classification of the goods.
- Tax Identification Number (TIN): Some countries require an importer to provide their tax ID number for processing.
3. Customs Duty & Tax Payment
- Payment of Customs Duty: Based on the customs declaration and the duty rates for the goods, the importer needs to settle the applicable customs duties and taxes.
- Payment of VAT (if applicable): Value-added tax (VAT) might also be due on the goods depending on the country of import.
- Customs Clearance Fee: Some countries charge a fee for the customs clearance process.
4. Final Clearance and Delivery
- Inspection by Customs (if applicable): Customs authorities may inspect the goods to verify the description, quantity, and compliance with regulations.
- Release of Goods: Once the payment of duties and taxes is complete and goods are cleared, customs will release the shipment.
- Customs Declaration Receipt: A receipt or clearance confirmation from the customs authorities, indicating that the goods have been successfully cleared.
- Delivery to Destination: The goods can now be delivered to the final destination (warehouse, buyer, etc.).
Export Customs Clearance Checklist
1. Shipping Documents
- Commercial Invoice: It is a detailed document/invoice issued by the exporter to the importer, stating the value of the goods, description, and payment terms for the goods.
- Packing List: A list that describes the goods, with their packaging, weight, and the sizes.
- Bill of Lading (B/L) / Airway Bill (AWB): The transport document issued by the carrier, confirming receipt of goods and the terms of carriage.
- Export License (if applicable): Some goods may require an export license from the government (e.g., military equipment, sensitive technology).
- Certificate of Origin: Certifies the country of origin of the goods or manufacturing country, which is mostly required to qualify for preferential tariff treatment or for certain countries’ regulations.
- Shipper’s Export Declaration (SED): It is a mandatory declaration for U.S. exports to report the shipment to the authorities. Other countries may also have similar requirements.
- Dangerous Goods Declaration (if applicable): It is required for hazardous goods to ensure safe transportation and handling.
- Insurance Certificate: If applicable, a certificate which proves that the goods are insured during transport.
- Letter of Credit (if applicable): If the transaction is conducted through a Letter of Credit, the necessary documents must be provided to fulfill the terms of the L/C.
2. Documentation for Export Authorities
- Export Customs Declaration Form: The exporter must present this form to declare the goods, including a detailed description and their HS code.
- Harmonized System (HS) Code: Proper classification of the goods under the international HS system is required for both export customs and for tariff classification.
- Prohibited/Restricted Goods List: Ensure the goods are not prohibited or restricted in the destination country (e.g., banned substances or restricted items).
3. Duties & Taxes
- Export Duty (if applicable): Some countries require export duties on specific goods. Verify local rules to see if this is relevant.
- VAT (if applicable): Some countries may apply VAT to exports, but in many cases, exports may be exempt from VAT.
4. Customs Inspection and Clearance
- Customs Inspection (if applicable): The export customs authorities may inspect the goods to verify the accuracy of the declaration and the goods’ compliance with regulations.
- Payment of Duties/Fees: Any export duties or fees should be paid as required by the customs authorities.
5. Final Clearance and Shipment
- Export Customs Clearance Certificate: When customs clearance is completed, then a certificate or confirmation may be issued that allows the shipment to proceed.
- Shipment to Destination: After clearance, the goods are loaded onto the chosen mode of transport like ship, airplane, truck and sent to the destination country.
- Transport/Shipping Confirmation: Confirmation from the carrier like a shipping company or airline that the goods have been shipped, with tracking information provided.
